To calculate compensation for unused vacation, paid both in return for vacation days exceeding 28 calendar days, and upon dismissal of an employee, it is necessary to determine his average earnings (Article 114 and part 4 of Article 139 of the Labor Code of the Russian Federation). Average earnings are calculated taking into account the features that are given in the Regulations approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922 (hereinafter referred to as the Regulations).
When calculating the amount of compensation, the following are sequentially determined:
- calculation period for calculating average earnings;
- the amount of payments taken into account in calculating average earnings;
- average daily earnings of an employee;
- the number of vacation days for which compensation is due.
The amount of compensation for unused vacation is equal to the product of the employee’s average daily earnings by the number of vacation days for which compensation is due.
Vacation pay calculator
How to use the calculator?
- Enter the start and end dates of your vacation. Take the first one from the employee’s application, choose the second one yourself. Make sure that the number of vacation days matches the number on the application. Holidays are not counted as vacation days, so vacation according to the calendar may be longer.
- The billing period will be determined automatically. Add exception periods if there are any - these are vacations, sick leave, business trips or absences from work for other reasons. If during the billing period you massively increased the salaries of all employees of the organization or department, check the box. It is not needed if the salary of only one or several employees was increased.
- Go to the next step and indicate payments to the employee for the payroll period. This is a salary with allowances and bonuses, which are taken into account according to the rules from paragraph 15 of the Government Decree. Do not take into account vacation pay, sick leave, business trips and other payments based on average earnings, as well as financial assistance and compensation for food expenses.
- At the last step, look at the amount of vacation pay and personal income tax. An article about what documents to use to apply for a vacation
An example of determining the period for calculating the average salary
Consider a situation in which it is necessary to calculate the average salary for the past 12-month period:
The employee went on a business trip on February 14, 2021. For this period, the company paid him an average salary. To calculate the value, it is necessary to consider the period from 1.01. until 31.12. last year, 2015. The employee was not at the workplace all the time:
- from April 12 to April 23, 2015 – on a business trip;
- from July 5 to July 25, 2015 – was on unpaid leave;
- from November 20 to November 28, 2015 – was incapacitated for work on sick leave.
Based on these data, the accountant determined the billing period:
- from January 1 to April 11;
- from April 24 to July 4;
- from July 26 to November 19;
- from November 29 to December 31.
Number of vacation days
An employee is entitled to paid leave of 28 calendar days for each working year worked (vacation period).
The vacation period starts counting from the date the employee is hired. As a rule, he needs to work for you for at least six months before going on vacation. But at the request of the employee, you can allow him to take leave earlier.
The vacation period includes all the time when the employee retained his place of work (position), including weekends and holidays, vacation days, sick leave, etc.
The length of leave for leave does not include the time of absence from work without good reason, including the time an employee is removed from work due to his fault, as well as the time of parental leave and leave without pay for more than 14 days per year. Days excluded from the vacation period shift the end of the employee’s working year.
The number of vacation days for a part-time working year is calculated using the formula::
The number of vacation days due to an employee for a full year / 12 months x Number of months worked.
Months worked are counted in the same way as the working year, from the date of hire.
Months not fully worked are taken into account as follows:
- a month is counted as fully worked if the employee worked half the month or more
- a month is not taken into account in the calculation if the employee worked less than half a month.
If an employee has accumulated vacation days for the past year, you can provide them as you like - in parts or combined with vacation for the current year.
Working part-time does not affect the calculation of vacation experience in any way.
Example: Dasha was hired on July 2, 2021. Since by the time the vacation starts on May 12, 2021, Dasha has not fully worked the working year, let’s calculate the number of vacation days for the incomplete working year:
- the months from July to December 2021 and from January to April 2021 have been fully worked out, 10 in total
- May 2021 has not been fully worked out, less than half a month, we do not take it into account.
Dasha worked fully for 10 months, for a full year she would have been entitled to 28 days of vacation, which means for an incomplete year: 28/12 x 10 = 23.
Rules for determining the billing period for calculating the average salary
According to labor legislation, the recommended and maximum pay period is a year (for the purpose of determining the average salary). But this does not mean that all 365–366 days will be included in the calculation. During calculations, only days actually worked are taken into account. It is recommended to exclude from the calculation:
- The periods during which the employee received average wages. Hence, breaks to feed the baby should be excluded.
- Time of incapacity for work on sick leave.
- Maternity leave.
- Duration of unpaid leave.
- Paid days off provided additionally to care for disabled children.
- Periods of downtime due to the fault of the employer.
- The time of a strike in which the employee did not take part, but could not work because of it.
- Other periods provided for by the legislation of the Russian Federation.
Having excluded such periods from the total duration of the period of time under consideration, the accountant can begin to calculate the average salary.
Billing period
This is 12 calendar months before the vacation. It depends on when the employee’s vacation actually begins. It does not matter for what period (working year) it was provided. If the employee has not yet worked 12 months, then the billing period is the time during which he is employed by you.
If an employee takes vacation from May 14, 2021, then the calculation period is from May 1, 2021 to April 30, 2021.
If the entire billing period falls on maternity leave or parental leave, replace it with the previous 12 months. If the billing period falls partly on maternity leave, do not change anything.
The number of days worked in the billing period is all working days, weekends and holidays while the employee was under an employment contract. Exclude business trips, vacations, sick leave or absences from work for other reasons.
The number of days in a month that is fully worked is always the same - 29.3.
Calculate the days in an incompletely worked month using the formula:
Number of days worked in a month / Number of calendar days in a month x 29.3.
Even weekends and holidays are considered days worked. Only discount those that fall during exclusion periods.
Example:
Dasha is going on vacation on May 12, 2021. During the billing period from May 1 to April 30, there were exception periods:
- business trip - from June 6 to June 11,
- annual paid leave - from August 14 to August 25.
Dasha worked completely for 10 months. Number of days = 29.3 x 10 = 293 days.
Let's count the number of days in June and August that Dasha did not work fully.
- In June = 24/30 x 29.3 = 23.44
- In August = 19/31 x 29.3 = 17.96
Days worked during the billing period: 293 + 23.44 + 17.96 = 334.4
Selecting a period for calculating the average salary
The Labor Code of the Russian Federation establishes a period of 12 months for determining average earnings. This is the most objective calculation method, taking into account the fact that unworked time, for example, business trips, is subtracted from the period. For some workers, wages fluctuate greatly throughout the year. This is especially true for the piecework form of payment and additional bonus payments to the salary.
In cases where an employee receives wages every month in equal parts, to simplify the calculation, the company has the right to establish a shorter billing period: 3, 6 months, or any other. The main condition is the absence of a negative impact of changes on employees.
Average daily earnings
Let's calculate it using the formula:
Payments in the billing period / Number of days worked during the same time.
Take into account the salary with all allowances and coefficients, and bonuses according to the rules from paragraph 15 of the Government Decree.
Do not take into account vacation pay, travel allowance, sick leave and other payments that are calculated based on average earnings, financial assistance, and compensation for food expenses.
If during the billing period you massively increased salaries in an organization, branch or division, index the average employee’s earnings according to the rules from paragraph 16 of the Regulations.
Divide the received payment amount by the number of days worked.
There is a separate article on calculating average daily earnings.
Example:
Dasha received 40 thousand rubles a month throughout the entire billing period.
Vacation pay base for the billing period = 40,000 x 12 = 480 thousand.
Average daily earnings = 480 thousand / 334.4 = 1435.41 rubles.
Amount of vacation pay = Average daily earnings x Number of vacation days = 1435.41 x 17 = 24,401.97.
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Regulatory regulation
The main question accountants ask is whether to include a period of non-working days when calculating average daily earnings?
Rostrud answers - no, do not include it (Letter of Rostrud of the Russian Federation dated May 18, 2020 N 14-1/B-585). Argument - periods of non-working days fit under “other cases of release from work...”, the time and accrued amounts of which are excluded from the calculation period for calculating average earnings (clause “e”, paragraph 5 of the Regulations on the specifics of the procedure for calculating average wages, approved by the Resolution Government dated December 24, 2007 N 922, hereinafter referred to as Resolution N 922).
Otherwise, the calculation of vacation pay after the self-isolation regime is carried out without any special features.
Accrual of vacation pay for periods not fully worked
When determining the period of work for which an employee is granted paid rest, the following time is not taken into account:
- receiving average earnings;
- illness, maternity leave;
- unpaid leave;
- additional days off to care for a disabled child;
- downtime due to the fault of the enterprise;
- other cases provided for by law.
When subtracting the listed periods, it turns out that the employee did not work the entire period calculated for vacation, but only part of it. This results in an incomplete rest time that needs to be determined.
To find how many calendar days of the pay period the employee is due for vacation, you need to perform several mathematical operations:
1. Calculate the number of days worked in a part-time working month: Td. = 29.3 : Td.m. × Tot.d., where:
- Td.m. – number of calendar days of the month;
- That.d. – number of days actually worked.
2. Determine the amount of average daily earnings using the formula: SD. = Z: (29.3 × Tm. + Td.), where:
- Z – total amount of earnings accrued for the period;
- Tm. – number of fully worked months;
- etc. – the number of days worked in a part-time working month (see clause 1).
If there are several incomplete months in one period, the calculation should be made separately for each of them, and then the results should be summed up.
How to determine the calculation period for vacation and in other cases of maintaining average earnings?
Vladimir Ilyukov
Determining the billing period is the first task that the accountant must solve when calculating vacation or in other cases of maintaining average earnings. All cases when an absent (non-working) employee retains the average salary are established in different places of the Labor Code of the Russian Federation. Here are some of them.
- Annual paid leave, Art. 114 Labor Code of the Russian Federation.
- Compensation for unused vacation, Art. 126-127 Labor Code of the Russian Federation.
- Additional study leaves, Art. 173-174, 176 Labor Code of the Russian Federation.
- Business trips, art. 167 Labor Code of the Russian Federation.
- Downtime due to the fault of the employer, Art. 157 Labor Code of the Russian Federation.
- Advanced training, Art. 187 Labor Code of the Russian Federation.
- Donation of blood and its components (donor days), art. 186 Labor Code of the Russian Federation.
- Severance pay in connection with dismissal due to liquidation of the organization, reduction of staff (number) of employees, conscription of the employee for military service; Art. 178 Labor Code of the Russian Federation.
- And other.
To determine the amount of average wages (average earnings) for all these cases, a single procedure has been established, Art. 139 Labor Code of the Russian Federation. At the same time, according to paragraph. 7 tbsp. 139 of the Labor Code of the Russian Federation, the specifics of calculating average earnings are regulated by Decree of the Government of the Russian Federation dated December 24, 2007 No. 922 “On the specifics of the procedure for calculating average wages”, hereinafter Resolution No. 922.
In standard situations, the 1C ZUP 3.1 program automatically determines the billing period. In other situations, the user must independently determine the billing period and set it in the program. To correctly determine it, let’s consider all the situations described in Resolution No. 922.
Situation 1: there are accruals in the main billing period
Verbatim quotation, para. 3 tbsp. 139 Labor Code of the Russian Federation.
“In any mode of operation, the calculation of the average salary of an employee is made based on the salary actually accrued to him and the time actually worked by him for the 12 calendar months preceding the period during which the employee retains his average salary. In this case, the calendar month is considered to be the period from the 1st to the 30th (31st) day of the corresponding month inclusive (in February - to the 28th (29th) day inclusive).”
Paragraph 3, Article 139 of the Labor Code of the Russian Federation
For example, an employee goes on vacation from April 25 of the current year for 28 calendar days. Therefore, the billing period begins on April 1 of the previous year and ends on March 31 of the current year, figure.
Blue hexagons indicate the months of the billing period. The numbers in them indicate the month number in the corresponding year. If an employee has days worked in a payroll period and there are corresponding accruals that are taken into account in calculating average earnings, then this period is accepted as a payroll period.
In the situations considered below, we will conditionally call the so-defined billing period the main (basic or standard) billing period. This is due to the fact that in other situations the billing period is determined by a shift relative to the base billing period.
The basic payroll period applies both to employees who have worked for more than a year, and to those who were hired during the payroll period and already had some kind of salary accrual.
Situation 2: there are no accruals in the main billing period
It happens that the employee’s main pay period does not contain a single day worked and does not contain salary accruals. There is no direct answer in the Labor Code of the Russian Federation on how to determine the billing period in this case. The required solution is proposed in paragraph 6 of Resolution No. 922.
“If the employee did not have actually accrued wages or actually worked days for the billing period or for a period exceeding the billing period, or this period consisted of time excluded from the billing period in accordance with paragraph 5 of these Regulations, the average earnings are determined based on the amount of wages actually accrued for the previous period, equal to the calculated one.”
Clause 6 of Resolution No. 922
In this norm, everything is clear except for the crossed out red phrase. We are not taking it into account for now.
The option when the main billing period does not contain working days and accruals, but there are accruals starting from the 13th month preceding the period of saving average earnings, is relatively rare. But such a situation is in principle possible. For example, during the entire base pay period, the employee was on unpaid leave, went on long business trips, was sick for a long time between business trips, etc.
In such cases, the previous period should be taken as the billing period, equal in duration to the main billing period, 12 months (clause 6 of Decree No. 922), figure.>
In this situation, the current billing period is simply the next 12 months preceding the main billing period.
Situation 3: there are no accruals in a period exceeding the main billing period
We will quote paragraph 6 of Resolution No. 922 again, but we will focus on the previously excluded phrase (in bold).
“If the employee did not have actually accrued wages or actually worked days for the billing period or for a period exceeding the billing period, or this period consisted of time excluded from the billing period in accordance with paragraph 5 of these Regulations, the average earnings are determined based on the amount of wages actually accrued for the previous period, equal to the calculated one.”
Clause 6 of Resolution No. 922
Upon superficial analysis, it seems that the phrase “... or for a period exceeding the billing period” seems unnecessary, erroneous, and illogical. This conclusion can be reached if by “period exceeding the billing period” we mean months outside the base billing period. If you count from the month of the occurrence of the event in which the average earnings are saved, then this is the 13th, 14th or other month.
This is a misunderstanding. Here , the period exceeding the main billing period means the entire period preceding the period of maintaining average earnings . Let's consider a fairly typical situation for a female employee of an organization.
- 06.2016. Employment date.
- 11.2016 to 16.04.2017 . Maternity leave period; 140 calendar days. The child was born on 02/07/2017.
- 04.2017 to 08.07.2018 . The period of parental leave is up to 1.5 years. We believe that the employee did not take out maternity leave for a child under three years of age.
- 08.2018. From this date, the employee goes on another paid leave.
The example data is illustrated in the following figure.
In this figure, the months of the main billing period are shown on a yellow background. This is the period from 08/01/2017 to 07/31/2018. The period that exceeds the main billing period is the period from November 1, 2016 to July 31, 2018. The hexagons representing the months of this period are filled with gray.
The calculation period for calculating the employee’s annual leave includes the months from 11/01/2015 to 10/31/2016. They are indicated by blue hexagons.
Situation 4: accruals are available only in the month of going on vacation
Verbatim quote, paragraph 7 of Resolution No. 922.
“If the employee did not have actually accrued wages or actually worked days for the billing period and before the start of the billing period, the average earnings are determined based on the amount of wages actually accrued for the days actually worked by the employee in the month of occurrence of the event that is associated with maintaining the average earnings"
Clause 7 of Resolution No. 922
For example, an employee was hired on April 10 of the current year, and on April 25 he was given paid leave in advance. A more realistic situation is when an employee goes on a business trip, for example, on the day he is hired. The billing period is equal to the period from April 10 to April 24 inclusive.
Situation 5: no billing period
Clause 8 of Resolution No. 922 provides for a rather rare situation.
“If the employee did not have actually accrued wages or actually worked days for the pay period, before the start of the pay period and before the occurrence of an event that is associated with maintaining the average earnings, the average earnings are determined based on the tariff rate established for him, salary (official salary) "
Clause 8 of Resolution No. 922
It is difficult to imagine a case where an employee goes on another vacation on the day he is hired, but theoretically it is possible. A more realistic situation is when an employee goes on a business trip, for example, on the day he is hired. In this case, there is no billing period.
Conclusion
The article discusses situations in relation to the standard duration (12 calendar months) of the billing period. However, everything said is also true for any other duration of the billing period. It is only important to remember that if an organization applies a calculation period of a duration other than 12 calendar months, then the corresponding decision must be reflected in the collective agreement or in a local act, paragraph. 6 tbsp. 139 Labor Code of the Russian Federation.
It is not necessary that all months of the billing period be fully worked out. When calculating annual leave or compensation for unused leave, the average monthly number of calendar days in the calculation period is used to determine average earnings. A separate article will be devoted to this issue.
If necessary, the billing period is shifted by 12 months only if there are no accruals in the base billing period; situation 2. In other cases, it is shifted back to the first month inclusive, in which there are accruals taken into account in the average earnings, situation 3.
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Calculation period of sick leave benefits
An officially employed employee has the right to receive financial compensation for a period of illness if the fact is confirmed by a doctor and sick leave is provided. The period for calculating the amount of payment is considered to be 2 years. The amount is calculated based on total earnings for the period by multiplying it by the compensation coefficient and the number of days of disability. The resulting number is divided into 730–732 days.
When making payments to employees, it is extremely important to correctly determine the period for which payments are due to an individual. The established time limits directly affect the average salary and many other social benefits and compensations.
